Net ppresent value

Column1 Column2 Column3 Column4

NET PRESENT VALUE

DISCOUNT RATE: 10%

YEAR RETURN NPV

1 100 90.9090909
2 100 82.6446281
3 100 75.1314801
4 100 68.3013455
5 100 62.0921323

NPV using the sum 379.078677

NPV using the npv formula ₹379.08
NPV using the pv formula ₹379.08

3. Loan table
Column1 Column2 Column3 Column4
IRR 7%

year principle cash flow cash flow(income)

1 1000 300 68.1339688
2 768.133969 200 52.3360159
3 620.469985 350 42.2750826
4 312.745067 100 21.3085627
5 234.05363 250 15.9470027
6 0.0006326
For example: You take a loan for $10,000 at an interest rate of 7% per year. The bank wants you to mak

Column1 Column2 Column3 Column4 Column5

intrest princ 10,000 creating the loan table
rate 7% principle
time/term 6 1 10000
annual payment ₹2,097.96 2 8602.04
3 7106.2228
4 5505.6984
5 3793.13728
6 1960.69689
-0.0143239

Column1 Column2 Column3 Column4 Column5

Future Value with inaitial deposit
rate 10%
year begine add interest end
0 0 1000 100 1100
1 1100 1000 210 2310
2 2310 1000 331 3641
3 3641 1000 464.1 5105.1
4 5105.1 1000 610.51 6715.61
5 6715.61 1000 771.561 8487.171
6 8487.171 1000 948.7171 10435.8881
7 10435.8881 1000 1143.58881 12579.4769
8 12579.4769 1000 1357.94769 14937.4246
9 14937.4246 1000 1593.74246 17531.1671
10 17531.1671

Using the FV function ₹17,531.17

 Continous componding

iniatal deposit 1000 no of comp amnt

intrest rate 6% 1 1060
no of coumponding in a year 2 2 1060.9
intrest per compunding 3% 3 1061.208
amnt after 4 year 1125.50881 4 1061.36355
5 1061.45738
6 1061.52015
7 1061.56509
8 1061.59885
9 1061.62514
10 1061.64619

1061.83655
amnt vs no of compounding

1061.8
1061.6
1061.4
1061.2
1061
1060.8
1060.6
1060.4
1060.2
1060
1059.8
0 2 4 6 8 10 12
 1 Intrernal rate of return

Column1 Column2 Column3 Column4 Column5

INTERNAL RATE OF RETURN

YEAR
0 -400
1 100
2 150
3 170
4 200
5 290

internal rate of retuen 29%

rate of Interest which will make the NPP of investment = 0

4. multiple IRR
Column5 Column1 Column2 Column3
discount rate 10%

cash flow(prin) year cash flow

231.866031 0 -145
147.663984 1 100
307.724917 2 100
78.6914373 3 100
234.052997 4 100
5 -275

NPV ₹1.23
IRR 1 9%
iRR 2 27%
per year. The bank wants you to make a series of payments which will pay off the loan and the interest over 10 years.

Column6 Column7 Column8 Column9

eating the loan table rate= 7%
cashflow cash(income)cash(princi)
2097.96 700 1397.96
2097.96 602.1428 1495.8172
2097.96 497.435596 1600.5244
2097.96 385.398888 1712.56111
2097.96 265.51961 1832.44039
2097.96 137.248783 1960.71122

retirement problrm

• At the beginning of each of years 1, 2, 3, 4 (that is, starting today and a

After retirement at age 60, you anticipate living 8 more years.5 At the begin- ning o

Column1 Column2 Column3 Column4

age beginig deposit
55 0 29386.551
56 31737.4751 29386.551
57 66013.9482 29386.551
58 103032.539 29386.551
59 143012.617 29386.551
60 186191.102 -30000
61 168686.39 -30000
62 149781.301 -30000
63 129363.805 -30000
64 107312.91 -30000
65 83497.9424 -30000
67 57777.7778 -30000
68 30000 -30000
 USING XIRR FUNCTION to Calculate the XIRR

date amnt
XIRR is the extended internal rate of return o
01-Jan-14 -1,000

4 03-Mar-14 150

5 04-Jul-14 100

6 12-Oct-14 50

7 25-Dec-14 1,000
discount rate 12%
XIRR= 0.37188269 XNPV #NUM!
annualized rate of return for a s
 Chart Title
₹800.00

₹600.00

₹400.00

₹200.00

₹0.00
0% 5% 10% 15% 20% 25%
(₹200.00)

(₹400.00)

(₹600.00)

(₹800.00)

year cashflow
0 -1000
rate npv 1 100
0% ₹600.00 2 100
3% ₹275.95 3 100
6% ₹37.17 4 100
8% (₹87.55) 5 100
9% (₹141.71) 6 100
10% (₹191.18) 7 100
12% (₹277.89) 8 100
14% (₹350.95) 9 100
16% (₹412.90) 10 100
18% (₹465.79) 11 100
20% (₹511.22) 12 500
22% (₹550.47)
 interest 8%
tirement problrm ann deposit 29386.551
ann withdrawla
30, 000
hat is, starting today and at the beginning of each of the next four years), you intend to make a deposit into
e years.5 At the begin- ning of each of these years you want to withdraw $30,000 from your retirement account. Your acco

A retirement problem Column5 Column6

intrest total end
2350.92408 31737.4751
4889.922087 66013.9482
7632.039933 103032.539
10593.52721 143012.617
13791.93346 186191.102
12495.28814 168686.39
11094.91119 149781.301
9582.504089 129363.805
7949.104416 107312.91
6185.032769 83497.9424
4279.835391 57777.7778
2222.222222 30000
#NAME? #NAME?
nded internal rate of return of a cash flow which is annualized rate of return for a series of cash flows occurring at irregu

d rate of return for a series of cash flows occurring at irregular intervals.

25%
nd to make a deposit into the retirement account. You think that the account will earn 8% per year.
tirement account. Your account balances will continue to earn 8%.
ash flows occurring at irregular intervals.
earn 8% per year.